After nearly doubling first-quarter revenue against the previous-year period, Mor Weizer, chief executive of Playtech Ltd., said the company will continue its bullish push for new licensees after signing nine in 2008 alone.
Revenue for the period ending March 31 totaled $39 million -- a record -- up 97 percent versus $19.1 million in the first quarter of 2007.
Revenue from casino -- its flagship offering -- came in at $27.2 million, up 79 percent compared to $15.2 million during the year-ago period, with revenue from poker up 161 percent to $11 million.
According to PokerScout.com, the company's iPoker Network now boasts the largest pool of players outside of the United States.
Guy Emodi, the company's chief financial officer, indicated on Tuesday's conference call that revenue for the quarter derived primarily from organic growth in existing licensees.
While the software developer launched two new licensees late in the quarter, Mr. Emodi said their contribution to revenue was "marginal."
Meanwhile, Playtech's shares, currently trading at an all-time high of 504p, have risen 60 percent since Jan. 23, 2008.
While impressive, is the company's rate of growth -- in revenue and share value -- sustainable?
"The key is that they continue to gain licensees," Simon Holliday, a partner with Global Betting and Gaming Consultants, told Interactive Gaming News.
"They signed a number this quarter that won’t be online until next quarter. I expect the growth average of revenue per licensee to slow.
"But these guys are at the front of the industry now," he continued, "and with volume and a strong reputation, I expect them to attract new licensees, and these in turn to attract players."
Currently, the company serves 59 licensees, 11 of which are still in production -- an unknown number of which are scheduled to launch late in the second quarter.
Looking ahead, Mr. Weizer said the company has plans to complete two migrations -- contract wins over rival providers -- later this year, but declined to comment on the identities of the incoming licensees.
"With regard to the migrated licensees, we can't disclose it yet given the fact that they have to notify their software providers," he said Tuesday. "But we are working together with them already in order to produce all the necessary products for them."
Concerning operating margins, Mr. Weizer said he expected growth from 67 percent "towards 70" percent in 2008. Additionally, he told Financial Times the company has cash of roughly $90 million to spend on acquisitions, up from $86.5 million in the fourth quarter of 2007.
The London-listed company, with a market capitalization of £1.09 billion, or $2.12 billion, said April trading was up 9 percent against the first quarter.
Collins Stewart, the company's broker, increased its annual revenue forecast by 7 percent and profit-before-tax estimate by 10 percent.
Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.